[Steel and Fire and Stone]

Hmmmm..now let's think about this for a second.

1. The "M.O." for every leftist is to find the largest, loop-hole resistent stream of tax revenue, and soak it for every dime. Hence, the earlier Clinton/Gore proposal for a "BTU" tax on every energy resource. Or, internet related taxes on every connection. Or, as was passed, the Gore telecommunications (i.e. "for the children") tax on every phone bill. This fits the leftist M.O. perfectly.

2. Because of the environmental restrictions and regulation in California, there is an artificial shortage of homes. That shortage, plus low interest rates has hyper-inflated the median cost of a home. Comparison: New home property permits in Arizona: $7,000. Time from start to build out. 3 months. California: Permits, studies, and related building costs: $40-70,000. Time from start to build out: 1.5-2 YEARS!. Median home price: about $425,000.

3. Because of point 2 above, most folks own on paper way more housing than they can afford. For example: I paid $195,000 for my house in 1992. Current market value: $475,000. Difference in taxes if prop 13 is voided: From about $2500 per year to over $5000 per year. I assure you that I do not make anywhere near the salary required to "own" a $half-million home, nor could I afford the taxes on one.

4. I literally have a "for sale by owner" sign in my garage, and I'm ready to put the house on the market and head out-of-state on a moments notice. The property market will crash as soon as there is any serious possibility (like the election of the Terminator??) of a move to repeal prop 13. I'll be out before the wave hits, rather than be taxed out of my home, and so will 1,000,000 other Californians.

I'm trying to recall: Did Schwarzeneggar say something about "cleaning house in Sacramento", or did he say "clearing people out of their houses in Sacramento". Both Arnold and Buffet are savy Real Estate people. They KNOW what would happen if prop. 13 is repealed, and most likely, stand to cash in on it (i.e. they have substantial liquid assets to buy in on a foreclosure-rich market).

Color me skeptical.

SFS

[goldstategop]

The saving grace is most tax paying people would be gone from California for good. If Arnold and Buffett want to save California from going into the Pacific, this a funny way of going about it.

[Steel and Fire and Stone]

..From about $2500 per year to over $5000 per year...

Sheessssh, it's late. That was a foolish statement. What was I thinking??!

Prop 13 limits the property tax to 1% of the valuation, frozen until the property turns over or improvements over $10,000 are made on it, when it can then be reappraised. There are a couple of ways they've worked around this hard barrier (special purpose tax districts for parks, etc.) and there's an increase permitted for inflation, but generally speaking, taxes remain about what they were when the house is purchased.

However, not only will the appraised value be "unfrozen", but the 1% limit would be voided as well. While 1% (plus special assessments) of $475,000 might be about $5,000, if the rate was raised to between 2-3% (as I believe it was in New Hampshire when I was on the East Coast for a year; I could be wrong), then the new property tax rate could be as high as $12,000-15,000 a year.

Now, THAT'S a cool piece of change that could fill in that nasty $38 Billion (illegal!) deficit, and provide Billions more for new Arnold-programs!

SFS

[DB]

The funny thing is the state has been having a huge windfall in property taxes because of the real estate bubble here. Everyone buying a house at these inflated values are paying through the nose in property taxes.

And yet the state complains...

[VxH]

>> They KNOW what would happen if prop. 13 is repealed,

What would it take to repeal prop. 13?